Salary Guide 2023
MID YEAR UPDATE
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Information Technology 
Human Resources 
Accountancy 
Marketing Methodology
This salary guide focuses on the information technology, human resources, marketing, accountancy & finance sectors.
The salary information has been drawn from several sources. We have analysed data from over 3,400 organisations, 21,000 registered jobs, 350,000 recently active candidates, ONS data and external data sources that the Ashdown Group subscribes to.
Market insights have been gathered through feedback from the Ashdown Group recruitment team and a series of targeted surveys to determine the salary and employment market trends through 2023 from over 2100 clients.
Salary data is presented as lower quartile, median and upper quartile against basic salary, without the inclusion of bonuses or benefits packages. Each percentile relates to a different level of experience and industry sector. The data is intended to be used as a guide and is based on average salaries.
If you would like to find out more about how your salaries compare to others in the market, we offer our clients bespoke individual salary reports for a precise salary assessment, based on industry, geography, competition, job role and company size.
Employment Market Trends
July 2023
It hasn’t been a great 12 months from an employee’s perspective.
Hiring demand has fallen every month since July 2022, leading to greater candidate availability and impacting salary negotiations, making it harder for staff to insist on raises.
The volume of jobs has fallen by an average of 25% across our sectors between January and June 2023, and the number of jobs advertised is significantly lower than the same period in 2022. With interest rates rising in June for the ninth time since May 2022, this trend is likely to continue for the rest of the year.
Prior to this, high-demand skill areas such as software development and cyber security could previously expect annual salary increases of 10% to 15%. With demand faltering across the board, these roles are now seeing annual increases more in line with the national average of 6% to 7%. With inflation staying stubbornly at around 8%, even employees with the strongest negotiating powers are taking a real-terms hit of 2% to 3% in spending power.
Basic salaries are not the only area employees are receiving less. In 2022, our research showed 52% of employers across all four of our sectors gave employees some form of financial support to address the increased cost of living in 2022. In 2023, just 5% of employers are doing this.
January 2023
Throughout the first half of 2022, demand for candidates soared to an all-time high, plateauing in mid-summer as businesses scrambled to meet growth plans. Since then, we have seen a gentle cooling of the job market as economic pressures and market volatility eroded business confidence in the second half of the year, in line with ONS* job market data.
However, demand for staff within knowledge industries is still outstripping supply, meaning salary inflation for roles in these areas is above the national average within the private sector of 6.6%*.
With unemployment at its lowest since 1974 and a shortage of key skills, employers are under pressure to raise salaries to retain their teams and attract new employees.
Short-term challenges
July 2023
At the moment, there is relatively little light at the end of the tunnel. As the Bank of England wrestles with inflation, the financial markets predict further increases in interest rates and we expect this will further impact demand for skills and growth hiring in the short term.
During 2022 many employers, finding it difficult to fill roles, hired at a lower level of skill and experience than usual. As a result, retention and development has become a core focus of businesses – 52% of the businesses we surveyed are maintaining their training budget in 2023 and over 40% are increasing spend in this area.
GDP growth and better economic conditions will return at some point – current forecasts suggest midway through 2024 – and businesses need to be careful that, with so little growth hiring currently occurring, they are in a position to deliver on their planned strategy once growth returns. A lack of talent may cause problems for those who fail to plan now for better economic times.
The cost-of-living crisis
July 2023
The cost-of-living crisis is having a profound effect on employees in 2023, with a higher salary becoming the primary reason for seeking a new job. Most UK incomes are falling in real terms, with increased taxation and high inflation having an impact.
In 2022 companies rushed to help, putting a range of measures in place to ease the pressure if they couldn’t offer inflation-matched pay rises. But while these are still ongoing at some employers, the level of support on offer has fallen over the last 12 months. During 2022 over half (52%) of the businesses we surveyed offered a one off cost-of-living payment or other financial assistance; in 2023 just 5% plan to repeat this.
In addition, salary negotiations have become tougher for employees. In 2022, we saw more organisations increasing salaries in line with or above inflation – software development and testing roles, for instance, saw annual increases averaging 15%. Things have been much more muted in 2023, with annual increases in hard-to-fill areas now matching the national average of 6% to 7%.
It’s important to note that the impact of these smaller raises will be particularly acute in 2023, because of rising housing costs. Across 2023 the Consumer Price Index (CPI) measure of inflation is predicted to be 7%. The RPI, however, includes mortgage payments, and is expected to be above 10%. As employees come to the end of fixed rates of 1% to 2% interest and move on to today’s rates of 6 or 7%, their disposable income will fall dramatically. Renters will also suffer as landlords pass their costs on.
Cost-of-living support measures
Despite the drop in cost-of-living support, many employers in the UK are still taking an active interest in employee wellbeing, including financial wellbeing, as part of a broader employee engagement initiative. Measures include:
- Introduction of employee assistance programmes (EAP) that support staff with financial wellbeing. They offer access to free financial advice, training, and debt management services.
- Crisis management loans with no interest.
- Upskilling employees and supporting professional development.
- Subsidised meals.
- Offering additional work-from-home options to reduce commuting costs and subsidised travel.
- Introduction of workplace stress management programmes.
In-demand skills
July 2023
Although we have seen a reduction in hiring during 2023, there is a latent demand for certain skills within all four of our industries. This is especially true for hard-to-fill positions such as software development and data centric roles.
While it may not be possible for everyone, we would advise any business with a strong balance sheet to take advantage of the quiet hiring market to acquire the skills they will need to grow market share.
Not only will this offer access to a higher number of candidates in a market that is relatively low on opportunities for job seekers, it will ensure your business is on the front foot when growth returns.
With so much pressure on incomes – rising mortgage rates are causing particularly acute issues for many in 2023 – any upturn in demand for skills once the economy improves will be accompanied by higher salary demands, more resignations, and tough competition when it comes to sought-after skills. Strategic workforce planning has never been so critical.
Remote work
July 2023
The preferred hybrid model has become two to three days in the office per week. Employees are pushing for a more balanced life, while employers are seeking the benefits of collaborative face-to-face time. Businesses insisting on Monday to Friday office-based work are accessing a much smaller talent pool, or having to pay as much as 10% more to attract new talent.
With pay historically higher in London and the South East, salaries are now becoming more consistent across all regions as remote working becomes the norm - especially within hard to fill positions. This is putting regional businesses under pressure, with many struggling to hire.
As a result of these cost pressures, more businesses are being forced to consider outsourcing their hard to find roles.
Workplace Culture and Environment
July 2023
Salaries have become more important to employees, but they’re not the only aspect considered when deciding whether to take a job. Workplace flexibility has become highly important to many – in part because avoiding high commuting costs can help ease the pressure in an inflationary environment with stagnating salaries.
It would be easy to think that the softening job market has given employers the upper hand when it comes to persuading people to return to the office. But it’s not that simple. In addition to the cost of commuting, employees have become wedded to the comparative freedom working from home can offer, and coming into the office more than three days a week is deeply unpopular. Businesses who do insist on five days a week in the office are likely to find themselves having to pay higher salaries as a result – and potentially still finding it difficult to fill roles. Conversely, others will be able to use their flexible approach to entice sought-after staff.
Instead of a forced office return, we have seen many employers focusing on the benefits of office-based work in a bid to persuade people in. Collaborative projects, training sessions and team decision making sessions all help to bring people together. Employers can also educate staff about the negatives of being too isolated, which can impact mental and physical health as well as personal motivation.
January 2023
With a highly competitive job market, companies have been looking at innovative approaches to attract and retain employees, with an increased focus on wellbeing and purpose via ESG (environmental, social, and governance) schemes.
Flexible working and hybrid work environments are now an expectation for many employees.
2022 saw employees focus on the purpose of the organisations they work for. There is growing pressure on companies to ensure they are sharing and communicating company values and demonstrating their impact on society, with employees finding it increasingly important that their employers act ethically and with integrity. Any business that ignores these factors will lose out when looking to attract new talent. Diversity, sustainability and minimising impact on the environment are all key factors for candidates looking for new roles.
Media stories flagged the growth of so-called ‘quiet quitting’ – doing the bare minimum at work - gaining momentum as a trend online in 2022, but this was not something we’ve observed in our network.
Following years of pandemic lockdowns that involved 100% remote working, the preferred hybrid model, favoured by most employers and employees, is two to three days in the office per week. Employees are pushing for a more balanced life, while employers are seeking the benefits of collaborative face-to-face time. Businesses insisting on Monday to Friday office-based work are accessing a much smaller talent pool, or having to pay as much as 10% more to attract new talent.
With pay historically higher in London and the South East, salaries are now becoming more consistent across the regions as remote working becomes the norm - especially within hard to fill positions. This is putting regional businesses under pressure, with many struggling to hire.
As a result of these cost pressures, more businesses are being forced to consider outsourcing their hard to find roles.
ESG, diversity and sustainability
July 2023
In a similar vein, it would be a mistake for businesses to abandon or lose momentum on diversity, equality and inclusion initiatives, sustainability work, and wellbeing projects. There is growing pressure on companies to ensure they are sharing and communicating company values and demonstrating their impact on society, with employees finding it increasingly important that their employers act ethically and with integrity. These initiatives make employers stand out as being great places to work, attract more candidates, and take the pressure off salaries as being the only reason to take a job. Employers that ignore these areas will find it harder to attract new talent.
The need for workforce planning
July 2023
Rapid technology advancements are creating perpetual change within all four of our sectors, and businesses are constantly having to find new ways to evolve. This has a significant impact on the skills and talent a business will need in the future.
Post-pandemic, the increase in working from home is not the only thing that has shifted. Whole operational workflows are being reviewed, and generative AI is increasingly being used for routine tasks. Across the board, the speed of change is undeniable – and it means businesses need to plan for what’s coming. Upskilling teams and identifying skills gaps is crucial, although increasingly difficult given the uncertainty over how some industries are changing, and the skills that will be needed.
What we do know, however, is that workforce planning is a critical part of navigating change successfully. In addition, some areas of training are a safe bet – in our June 2023 survey of accounting professionals, for instance, 80% said they will need training in AI to ensure they can use it effectively in their role.
CEOs agree investment in training is needed. In PwC’s 2023 CEO survey, 40% of UK CEOs agreed the tech skills and understanding of their teams lags behind the demands of their strategic objectives.
How are UK employers attracting talent?
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